CCPA Dispells Minimum Wage Myths

By Denise Moffatt · October 29, 2014

29

October 2014

In October, the CCPA released a Canada wide study entitled Dispelling Minimum Wage Mythology that demonstrates that increases to minimum wage have little if no impact on job creation and job loss. They found:

In 90% of the instances there was no statistically significant connection between the minimum wage and labour market outcomes.

In the remaining cases where there was a statistically significant connection between the minimum wage and employment, 3 outcomes were positive and 4 outcomes were negative.

The study also examined the impact on young workers and retail and hospitality workers and determined there is no consistent evidence of significant disemployment.

In fact, employment outcomes depend first and foremost on overall spending and macroeconomic activity, not on minimum wage regulations.

They conclude that policy makers can move ahead with an increase to the minimum wage in a gradual and ongoing manner without concerns about job loss resulting from the change.